SERVICE

MARKETING
CUSTOMER PERCEPTIONS
Of SERVICE

Chapter # 5
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CUSTOMER
PERCEPTIONS
How customers perceive services, how they assess whether
they have experienced quality service and whether they
are satisfied are the subjects of this chapter.

We will be focusing on the perceived service box in the

gaps model.

Because expectations are dynamic, evaluations may also

shift over time – from person to person and from
culture to culture.
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SATISFACTION VERSUS
SERVICE QUALITY

Practitioners and writers in the popular

press tend to use the terms satisfaction
and quality interchangeably, but
researchers have attempted to be more
precise about the meanings and
measurement of the two concepts.

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SATISFACTION VERSUS
SERVICE QUALITY

Satisfaction is generally considered as

broader concept.
Service quality assessment focuses
specifically on dimensions of service.
Perceived service quality is the
component of customer satisfaction.

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CUSTOMER PERCEPTIONS OF
QUALITY AND CUSTOMER
SATISFACTION

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 CUSTOMER PERCEPTIONS OF
QUALITY AND CUSTOMER
SATISFACTION
The quality of the product depends on the following issues:

 Reliability: ability to perform the promised service dependably and

accurately.
 Responsiveness: willingness to help customers and provide prompt
service.
 Assurance: Employees’ knowledge and courtesy and their ability to
inspire trust and confidence.
 Empathy: Caring, individualized attention given to customers.
 Tangibles: Appearance of physical facilities, equipment, personnel
and written materials.
Customer satisfaction on the other hand is more inclusive, it is
influenced by perceptions of service quality, product quality, and price
as well as situational factors and personal factors.
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 WHAT IS CUSTOMER
SATISFACTION?
Customer satisfaction is the customer’s evaluation of a
product or service in terms of whether that product or
service has met their needs and expectations.
Failure to meet needs and expectations is assumed to
result in dissatisfaction with the product or service.

Satisfaction can be related to the following feelings:

Fulfillment in the knowledge that one’s need have been met,
satisfaction can also be related to other types of feelings,
depending on the particular context or type of service.
Satisfaction can be viewed as Contentment more passive
response that consumers may associate with service they don’t
think a lot about or services that they receive routinely over time.
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WHAT IS CUSTOMER
SATISFACTION?
Pleasure: Services that make the consumers
feel good are associated with sense of happiness.

Delight: For those services which really surprise

the consumer in a positive way.

Relief: When removal of any negative leads to

satisfaction the consumer may associate a sense
of relief.

Ambivalence: When there is a mix of positive

and negative experiences associated with the
product or service.
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WHAT DETERMINES
CUSTOMER SATISFACTION?

 Product and Service Features

 Consumer Emotions
 Attributions for service success or
failure
 Perceptions of equity and fairness.
 Other consumers, family members
and co-workers.
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OUTCOMES OF
CUSTOMER SATISFACTION?

 Increased Customer Retention

 Positive word-of-mouth
Communications
 Increased Revenues

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SERVICE QUALITY
 Service Quality is a critical element of
customer perceptions. In the case of pure
services (e.g. health care, financial services,
education), service quality will be the
dominant element in customers’
evaluations.
 In cases in which customer service or
services are offered in a combination with a
physical product (e.g. IT services, auto
services), service quality may also be very
critical in determining customer satisfaction.
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SERVICE QUALITY
 The customer’s judgment of overall
excellence of the service provided in
relation to the quality that was
expected.
 Process and outcome quality are
both important.

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 THE FIVE DIMENSIONS OF
SERVICE QUALITY

Ability to perform the promised

Reliability service dependably and accurately.
Knowledge and courtesy of
Assurance employees and their ability to
convey trust and confidence.
Tangibles Physical facilities, equipment, and
appearance of personnel.
Caring, individualized attention the
Empathy firm provides its customers.
Willingness to help customers and
Responsiveness provide prompt service.
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 THE FIVE DIMENSIONS OF
SERVICE QUALITY

Reliability
n Providing service as promised
n Dependability in handling customers’ service problems
n Performing services right the first time
n Providing services at the promised time
n Maintaining error-free records

Responsiveness
n Keeping customers informed as to when services will be
performed
n Prompt service to customers
n Willingness to help customers
n Readiness to respond to customers’ requests 14
 THE FIVE DIMENSIONS OF
SERVICE QUALITY

Assurance
n Employees who instill confidence in customers
n Making customers feel safe in their transactions
n Employees who are consistently courteous
n Employees who have the knowledge to answer customer
questions

Empathy
n Giving customers individual attention
n Employees who deal with customers in a caring fashion
n Having the customer’s best interest at heart
n Employees who understand the needs of their customers
n Convenient business hours 15
 THE FIVE DIMENSIONS OF
SERVICE QUALITY

Tangibles
n Modern equipment
n Visually appealing facilities
n Employees who have a neat, professional appearance
n Visually appealing materials associated with the service

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 SERVICE ENCOUNTERS OR “MOMENTS OF
TRUTH”

From customers point of view the most vivid

impression of service occurs in the service
encounter or moment of truth, when the customer
interacts with the service firm.
Logic suggests all encounters are equally important
in building relationships. For every organization,
certain encounters are probably key to customer
satisfaction. Suppose in a hospital context,
encounter with nursing staff were more important
in predicting satisfaction.
Aside from the common key encounters, there are
some momentous encounters that are crucial. 17
TYPES OF SERVICE ENCOUNTERS

 Remote Encounters: Encounter can

occur without any direct human
contact. Example: ATM, Online
Shopping, billing statements etc.
 Phone Encounters
 Face to face Encounters

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OPPORTUNITIES OF SERVICE ENCOUNTERS

 Build Trust
 Reinforce Quality
 Build Brand Identity
 Increase Loyalty

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 A SERVICE ENCOUNTER
CASCADE FOR A HOTEL VISIT

Check-In

Bellboy Takes to Room

Restaurant Meal

Request Wake-Up Call

Checkout

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COMMON THEMES IN CRITICAL
SERVICE ENCOUNTERS
RESEARCH

Recovery: Adaptability:
Employee Response Employee Response
to Service Delivery to Customer Needs
System Failure and Requests

Coping: Spontaneity:
Employee Response Unprompted and
to Problem Customers Unsolicited Employee
Actions and Attitudes
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 General Service Behaviors Based on Service
Encounter Themes
Theme Do Don’t
Recovery Acknowledge Problem Ignore customer
Explain causes Blame customer
Apologize Leave customer to fend for
Compensate/upgrade himself/herself
Lay out options Downgrade
Take Responsibility Act as if nothing is wrong
“pass the buck”
Adaptability Recognize the seriousness of Ignore
the need Promise but fail to follow through
Acknowledge Show unwillingness to try
Anticipate Embarrasses the customer
Attempt to accommodate Laugh at the customer
Adjust the system Avoid responsibility
Explain rules/policies “pass the buck”
Take responsibility

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 General Service Behaviors Based on Service
Encounter Themes
Theme Do Don’t
Spontaneity Take time Exhibit impatience
Be attentive Ignore
Anticipate needs Yell/laugh/Swear
Listen Steal from customers
Provide information Discriminate
Show empathy
Coping Recognize the seriousness of Ignore
the need Promise but fail to follow through
Acknowledge Show unwillingness to try
Anticipate Embarrasses the customer
Attempt to accommodate Laugh at the customer
Adjust the system Avoid responsibility
Explain rules/policies “pass the buck”
Take responsibility

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 COMMON THEMES IN CRITICAL
SERVICE ENCOUNTERS
RESEARCH
 Contact employees
 Customer him/herself
 Other customers
 Operational flow
of activities
People
 Steps in process
 Flexibility vs.
standard  Tangible
communication
 Technology vs.
human Physical  Servicescape
Process  Guarantees
Evidence
 Technology
 Website

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END OF THE CHAPTER…

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